transaction ID or a code is sent to the recipient who needs to go to the mobile shop and provide the code and the transaction ID to receive the money.
“In this case a separate system would be prepared in tie up with mobile companies and the recipient would be able to withdraw the money from the ATM by punching the code in the machine,” said RK Bansal, ED, IDBI Bank. Bansal says that the sender will be required to have a bank account as of now.
In the second stage of this programme even the sender may not be required to have a bank account, making it accessible to more individuals.
IndiaPost also has a scheme in association with BSNL where money can be transferrer from one post office to another across the country. In this case also once the money to be transferred is deposited in the post office by a sender, a secret code is sent to the recipient’s mobile phone, who needs to visit a post office and show the code and an address proof to get the money from the post office.
While the current schemes charge a transaction fee of anywhere between 2 and 10 per cent of the amount transferred, sources close to the development say that the charges will be determined by individual banks in this case. It is, however, expected to be on the lower side.
While mobile shops have deeper penetration, bank ATMs do not have that and therefore access to this service may be limited to individuals who are in areas that are closer to a bank branch with an ATM.
In a bid to make this facility a success, the Reserve Bank of India will have to deepen the penetration of the ATMs in the country and bankers say that after public sector banks have opened an ATM in every branch, the next step will be to open ATMs in places where there are no branches.
“It would be ideal to reach out and open ATMs into areas where there are no bank branches but the problem is that ATMs need to be serviced and just setting up ATMs won’t help. We are first focussing on having ATMs at all branches and then we will move forward in that direction of setting them up in places that do not have branches so that it becomes more accessible for individuals,” said Kamath.
Smartphone sales in India